Pending bills of Rs 36,136 crore trigger caution over new projects

Bengaluru: The state Finance department has advised the government to exercise caution while announcing new development projects, citing mounting financial commitments and pending bills running into thousands of crores. Bills worth Rs 36,136 crore are pending in four major departments, adding to the pressure on the state exchequer.

The pending liabilities are spread across the Public Works Department (PWD), Water Resources, Minor Irrigation and Rural Development and Panchayat Raj departments. The Finance Department has suggested that the government ensure availability of funds before approving additional works, particularly when payments for several existing projects are yet to be cleared.

The department’s September 17 note also highlighted that the expenditure required for already approved works is estimated at more than Rs 2 lakh crore. This, officials have pointed out, leaves limited financial space for taking up fresh commitments without identifying additional sources of funding. More than Rs 5,000 crore worth of projects have reportedly received approval during the first six months of the 2026-27 financial year. At the same time, Water Resources, Energy, Commerce and Industries, Urban Development and Transport departments have sought additional allocations. The state’s fiscal deficit is projected at 2.95 per cent of GSDP, while the revenue deficit is estimated at Rs 22,957 crore. The government’s debt burden has also reached about 24.94 per cent of GSDP. Drought-related expenditure could further increase the financial burden. The government may require additional funds for relief measures and irrigation subsidies.

Chief Minister D.K. Shivakumar said there was nothing wrong in the Finance Department cautioning the government and asserted that the government would manage its finances appropriately.